BILL NUMBER: AB 1908	CHAPTERED  06/27/00

	CHAPTER   44
	FILED WITH SECRETARY OF STATE   JUNE 27, 2000
	APPROVED BY GOVERNOR   JUNE 27, 2000
	PASSED THE ASSEMBLY   JUNE 26, 2000
	PASSED THE SENATE   JUNE 22, 2000
	AMENDED IN SENATE   JUNE 20, 2000
	AMENDED IN SENATE   JUNE 19, 2000
	AMENDED IN ASSEMBLY   MAY 16, 2000

INTRODUCED BY   Assembly Member Lempert
   (Coauthor:  Senator O'Connell)

                        FEBRUARY 11, 2000

   An act to amend Sections 15102, 15106, 35233, and 72533 of, and to
add Chapter 1.5 (commencing with Section 15264) to Part 10 of, the
Education Code, relating to school bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1908, Lempert.  School bonds.
   Existing law authorizes the governing board of any school district
or community college to order an election and submit to the electors
of the district the question of whether the bonds of the district
shall be issued and sold to raise money for specified purposes.
Existing law generally requires 2/3 of the votes cast on the
proposition of issuing bonds to be in favor of issuing the bonds to
pass the measure.
   This bill would provide that, contingent upon the passage of the
"Smaller Classes, Safer Schools and Financial Accountability Act" at
the November 7, 2000, general election, as an alternative, the
governing board of a school district or community college district,
may, pursuant to a 2/3 vote of the governing board, pursue the
authorization and issuance of bonds by a 55% vote of the electorate,
at a primary or general election, a regularly scheduled local
election, or a statewide special election, subject to certain
additional requirements.
   The bill would require the ballot to be printed with a statement
that the governing board will appoint a citizens' oversight committee
and conduct annual independent audits to assure that funds are spent
only on school and classroom improvements and for no other purposes.
  The bill would require that after a successful election, the board
appoint an independent citizens' oversight committee, as specified.
The bill would state that the purpose of the citizens' oversight
committee is to inform the public concerning the expenditure of bond
revenues.
   The bill would authorize, as specified, an action to be maintained
to restrain and prevent expenditures of bond funds under certain
circumstances.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15102 of the Education Code is amended to read:

   15102.  The total amount of bonds issued pursuant to this chapter
and Chapter 1.5 (commencing with Section 15264) shall not exceed 1.25
percent of the taxable property of the district as shown by the last
equalized assessment of the county or counties in which the district
is located.  For purposes of this section, the taxable property of a
district for any fiscal year shall be calculated to include, but not
be limited to, the assessed value of all unitary and operating
nonunitary property of the district, which shall be derived by
dividing the gross assessed value of the unitary and operating
nonunitary property within the district for the 1987-88 fiscal year
by the gross assessed value of all unitary and operating nonunitary
property within the county in which the district is located for the
1987-88 fiscal year, and multiplying that result by the gross
assessed value of all unitary and operating nonunitary property of
the county on the last equalized assessment roll.
  SEC. 2.  Section 15106 of the Education Code is amended to read:
   15106.  Any unified school district or community college district
may issue bonds that, in aggregation with bonds issued pursuant to
Section 15270, may not exceed 2.5 percent of the taxable property of
the district as shown by the last equalized assessment of the county
or counties in which the district is located.
   In computing the outstanding bonded indebtedness of any unified
school district or community college district for all purposes of
this section, any outstanding bonds shall be deemed to have been
issued for elementary school purposes, high school purposes, and
community college purposes, respectively, in the respective amounts
that the proceeds of the sale of those outstanding bonds, excluding
any premium and accrued interest received on that sale, were or have
been allocated by the governing board of the unified school district
or community college district to each of those purposes respectively.

   (a) For the purposes of the State School Building Aid Law of 1952
(Chapter 6 (commencing with Section 16000) of Part 10) with respect
to applications for apportionments and apportionments filed or made
prior to September 15, 1961, and to the repayment thereof, Chapter 6
(commencing with Section 15700) of this part, inclusive, only, any
unified school district shall be considered to have a bonding
capacity in the amount permitted by law for an elementary school
district and a bonding capacity in the amount permitted by law for a
high school district.
   (b) For purposes of this section, the taxable property of a
district for any fiscal year shall be calculated to include, but not
be limited to, the assessed value of all unitary and operating
nonunitary property of the district,  which shall be derived by
dividing the gross assessed value of the unitary and operating
nonunitary property within the district for the 1987-88 fiscal year
by the gross assessed value of all unitary and operating nonunitary
property within the county in which the district is located for the
1987-88 fiscal year, and multiplying the result by the gross assessed
value of all unitary and operating nonunitary property of the county
on the last equalized assessment roll.  In the event of the
unification of two or more school districts or community college
districts subsequent to the 1987-88 fiscal year, the assessed value
of all unitary and operating nonunitary property of the unified
district or community college district  shall be deemed to be the
total of the assessed value of the taxable property of each of the
unifying districts as that assessed value would  be determined under
Section 15102.
  SEC. 3.  Chapter 1.5 (commencing with Section 15264) is added to
Part 10 of the Education Code, to read:

      CHAPTER 1.5.  STRICT ACCOUNTABILITY IN LOCAL SCHOOL
CONSTRUCTION BONDS ACT OF 2000
      Article 1.  General Provisions

   15264.  It is the intent of the Legislature that all of the
following are realized:
   (a) Vigorous efforts are undertaken to ensure that the expenditure
of bond measures, including those authorized pursuant to paragraph
(3) of subdivision (b) of Section 1 of Article XIIIA of the
California Constitution, are in strict conformity with the law.
   (b) Taxpayers directly participate in the oversight of bond
expenditures.
   (c) The members of the oversight committees appointed pursuant to
this chapter promptly alert the public to any waste or improper
expenditure of school construction bond money.
   (d) That unauthorized expenditures of school construction bond
revenues are vigorously investigated, prosecuted, and that the courts
act swiftly to restrain any improper expenditures.
   15266.  (a) As an alternative to authorizing and issuing bonds
pursuant to Chapter 1 (commencing with Section 15100), the governing
board of a school district or community college district may decide,
pursuant to a two-thirds vote and subject to Section 15100, to pursue
the authorization and issuance of bonds pursuant to paragraph (3) of
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution and subdivision (b) of Section 18 of Article XVI of the
California Constitution.  An election may only be ordered on the
question of whether bonds of a school district or community college
district shall be issued and sold pursuant to subdivision (b) of
Section 18 of Article XVI of the California Constitution at a primary
or general election, a regularly scheduled local election, or a
statewide special election.
   (b) Upon adopting a resolution to incur bonded indebtedness
pursuant to subdivision (b) of Section 18 of Article XVI of the
California Constitution and after the question has been submitted to
the voters, if approved at the election, the bonds shall be issued
pursuant to paragraph (3) of subdivision (b) of Section 1 of Article
XIIIA of the California Constitution and this chapter, and the
governing board may not, regardless of the number of votes cast in
favor of the bond, subsequently proceed exclusively under Chapter 1
(commencing with Section 15100).  Where not inconsistent, the
provisions of Chapter 1 (commencing with Section 15100) shall apply
to this chapter.
   15268.  The total amount of bonds issued pursuant to this section
and Section 15102 shall not exceed 1.25 percent of the taxable
property of the district as shown by the last equalized assessment of
the county or counties in which the district is located.  The tax
rate levied to meet the requirements of Section 18 of Article XVI of
the California Constitution in the case of indebtedness incurred by a
school district pursuant to this chapter, at a single election,
shall not exceed thirty dollars ($30) per one hundred thousand
dollars ($100,000) of taxable property.  For purposes of this
section, the taxable property of a district for any fiscal year shall
be calculated to include, but not be limited to, the assessed value
of all unitary and operating nonunitary property of the district,
which shall be derived by dividing the gross assessed value of the
unitary and operating nonunitary property within the district for the
1987-88 fiscal year by the gross assessed value of all unitary and
operating nonunitary property within the county in which the district
is located for the 1987-88 fiscal year, and multiplying that result
by the gross assessed value of all unitary and operating nonunitary
property of the county on the last equalized assessment roll.
   15270.  (a) Notwithstanding Sections 15102 and 15268, any unified
school district may issue bonds pursuant to this article that, in
aggregation with bonds issued pursuant to Section 15106, may not
exceed 2.5 percent of the taxable property of the district as shown
by the last equalized assessment of the county or counties in which
the district is located.  The tax rate levied to meet the
requirements of Section 18 of Article XVI of the California
Constitution in the case of indebtedness incurred pursuant to this
chapter at a single election, by a unified school district, shall not
exceed sixty dollars ($60) per one hundred thousand dollars
($100,000) of taxable property.
   (b) Notwithstanding Sections 15102 and 15268, any community
college district may issue bonds pursuant to this article that, in
aggregation with bonds issued pursuant to Section 15106, may not
exceed 2.5 percent of the taxable property of the district as shown
by the last equalized assessment of the county or counties in which
the district is located.  The tax rate levied to meet the
requirements of Section 18 of Article XVI of the California
Constitution in the case of indebtedness incurred pursuant to this
chapter at a single election, by a community college district, shall
not exceed twenty-five dollars ($25) per one hundred thousand dollars
($100,000) of taxable property.
   (c) In computing the outstanding bonded indebtedness of any
unified school district or community college district for all
purposes of this section, any outstanding bonds shall be deemed to
have been issued for elementary school purposes, high school
purposes, and community college purposes, respectively, in the
respective amounts that the proceeds of the sale of those outstanding
bonds, excluding any premium and accrued interest received on that
sale, were or have been allocated by the governing board of the
unified school district or community college district to each of
those purposes respectively.
   (d) For purposes of this section, the taxable property of a
district for any fiscal year shall be calculated to include, but not
be limited to, the assessed value of all unitary and operating
nonunitary property of the district, which shall be derived by
dividing the gross assessed value of the unitary and operating
nonunitary property within the district for the 1987-88 fiscal year
by the gross assessed value of all unitary and operating nonunitary
property within the county in which the district is located for the
1987-88 fiscal year, and multiplying the result by the gross assessed
value of all unitary and operating nonunitary property of the county
on the last equalized assessment roll.  In the event of the
unification of two or more school districts subsequent to the 1987-88
fiscal year, the assessed value of all unitary and operating
nonunitary property of the unified district shall be deemed to be the
total of the assessed value of the taxable property of each of the
unifying districts as that assessed value would be determined under
Section 15268.
   15272.  In addition to the ballot requirements of Section 15122
and the ballot provisions of this code applicable to governing board
member elections, for bond measures pursuant to this chapter, the
ballot shall also be printed with a statement that the board will
appoint a citizens' oversight committee and conduct annual
independent audits to assure that funds are spent only on school and
classroom improvements and for no other purposes.
   15274.  If it appears from the certificate of election results
that 55 percent of the votes cast on the proposition of issuing bonds
pursuant to subdivision (b) of Section 18 of Article XVI of the
California Constitution are in favor of issuing bonds, the governing
board shall cause an entry of that fact to be made upon its minutes.
The governing board shall then certify to the board of supervisors
of the county whose superintendent of schools has jurisdiction over
the district, all proceedings had in the premises.  The county
superintendent of schools shall send a copy of the certificate of
election results to the board of supervisors of the county.
   15276.  Notwithstanding any other provision of law, a county board
of education may not order an election to determine whether bonds
may be issued under this article to raise funds for a county office
of education.
      Article 2.  Citizens' Oversight Committee

   15278.  (a) If a bond measure authorized pursuant to paragraph (3)
of subdivision (b) of Section 1 of Article XIIIA of the California
Constitution and subdivision (b) of Section 18 of Article XVI of the
California Constitution is approved, the governing board of the
school district or community college shall establish and appoint
members to an independent citizens' oversight committee, pursuant to
Section 15282, within 60 days of the date that the governing board
enters the election results on its minutes pursuant to Section 15274.

   (b) The purpose of the citizens' oversight committee shall be to
inform the public concerning the expenditure of bond revenues.  The
citizens' oversight committee shall actively review and report on the
proper expenditure of taxpayers' money for school construction.  The
citizens' oversight committee shall advise the public as to whether
a school district or community college district is in compliance with
the requirements of paragraph (3) of subdivision (b) of Section 1 of
Article XIIIA of the California Constitution.  The citizens'
oversight committee shall convene to provide oversight for, but not
be limited to, both of the following:
   (1) Ensuring that bond revenues are expended only for the purposes
described in paragraph (3) of subdivision (b) of Section 1 of
Article XIIIA of the California Constitution.
   (2) Ensuring that, as prohibited by subparagraph (A) of paragraph
(3) of subdivision (b) of Section 1 of Article XIIIA of the
California Constitution, no funds are used for any teacher or
administrative salaries or other school operating expenses.
   (c) In furtherance of its purpose, the citizens' oversight
committee may engage in any of the following activities:
   (1) Receiving and reviewing copies of the annual, independent
performance audit required by subparagraph (C) of paragraph (3) of
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution.
   (2) Receiving and reviewing copies of the annual, independent
financial audit required by subparagraph (C) of paragraph (3) of
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution.
   (3) Inspecting school facilities and grounds to ensure that bond
revenues are expended in compliance with the requirements of
paragraph (3) of subdivision (b) of Section 1 of Article XIIIA of the
California Constitution.
   (4) Receiving and reviewing copies of any deferred maintenance
proposals or plans developed by a school district or community
college district, including any reports required by Section 17584.1.

   (5) Reviewing efforts by the school district or community college
district to maximize bond revenues by implementing cost-saving
measures, including, but not limited to, all of the following:
   (A) Mechanisms designed to reduce the costs of professional fees.

   (B) Mechanisms designed to reduce the costs of site preparation.
   (C) Recommendations regarding the joint use of core facilities.
   (D) Mechanisms designed to reduce costs by incorporating
efficiencies in schoolsite design.
   (E) Recommendations regarding the use of cost-effective and
efficient reusable facility plans.
   15280.  (a) The governing board of the district shall, without
expending bond funds, provide the citizens' oversight committee with
any necessary technical assistance and shall provide administrative
assistance in furtherance of its purpose and sufficient resources to
publicize the conclusions of the citizens' oversight committee.
   (b) All committee proceedings shall be open to the public and
notice to the public shall be provided in the same manner as the
proceedings of the governing board.  The citizens' oversight
committee shall issue regular reports on the results of its
activities.  A report shall be issued at least once a year.  Minutes
of the proceedings of the citizens' oversight committee and all
documents received and reports issued shall be a matter of public
record and be made available on an Internet website maintained by the
governing board.
   15282.  (a) The citizens' oversight committee shall consist of at
least seven members to serve for a term of two years without
compensation and for no more than two consecutive terms.  While
consisting of a minimum of at least seven members, the citizens'
oversight committee shall be comprised, as follows:
   (1) One member shall be active in a business organization
representing the business community located within the district.
   (2) One member shall be active in a senior citizens' organization.

   (3) One member shall be active in a bona fide taxpayers'
organization.
   (4) For a school district, one member shall be the parent or
guardian of a child enrolled in the district.  For a community
college district, one member shall be a student who is both currently
enrolled in the district and active in a community college group,
such as student government.  The community college student member
may, at the discretion of the board, serve up to six months after his
or her graduation.
   (5) For a school district, one member shall be both a parent or
guardian of a child enrolled in the district and active in a
parent-teacher organization, such as the Parent Teacher Association
or schoolsite council.  For a community college district, one member
shall be active in the support and organization of a community
college or the community colleges of the district, such as a member
of an advisory council or foundation.
   (b) No employee or official of the district shall be appointed to
the citizens' oversight committee.  No vendor, contractor, or
consultant of the district shall be appointed to the citizens'
oversight committee.  Members of the citizens' oversight committee
shall, pursuant to Sections 35233 and 72533, abide by the
prohibitions contained in Article 4 (commencing with Section 1090)
and Article 4.7 (commencing with Section 1125) of Division 4 of Title
1 of the Government Code.
      Article 3.  Bond Accountability

   15284.  (a) An action to obtain an order restraining and
preventing any expenditure of funds received by a school district or
community college district through the sale of bonds authorized by
this chapter pursuant to paragraph (3) of subdivision (b) of Section
1 of Article XIIIA of the California Constitution and subdivision (b)
of Section 18 of Article XVI of the California Constitution may be
maintained against any officer, agent, or other person acting on
behalf of, that school district or community college district, by a
citizen residing in the school or community college district who is
assessed and is liable to pay an ad valorem tax on real property
within the school or community college district, or who has paid an
ad valorem tax on real property within the school or community
college district within one year before the commencement of the
action if it appears by the complaint or affidavits that any of the
following conditions are present:
   (1) An expenditure of funds received by a school district or
community college district through the sale of bonds authorized by
this chapter is for purposes other than those specified in paragraph
(3) of subdivision (b) of Section 1 of Article XIIIA of the
California Constitution.
   (2) The expenditure is not in compliance with paragraph (3) of
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution.
   (3) That an expenditure in violation of paragraph (3) of
subdivision (b) of Section 1 of Article XIIIA of the California
Constitution will be made or will continue to be made during the
litigation that would produce waste or great or irreparable injury.
   (4) The governing board of a school district or community college
has willfully failed to appoint the citizens' oversight committee in
violation of the requirements of Section 15278.
   (b) An action brought pursuant to this section shall take special
precedence over all civil matters on the calendar of the court except
those matters granted equal precedence by law.
   (c) The rights, remedies, or penalties established by this section
are cumulative to the rights, remedies, or penalties established
under other laws, including subdivision (a) of Section 526 of Chapter
3 of Title 7 of Part 2 of the Code of Civil Procedure.
   (d) If an order is obtained to restrain and prevent an expenditure
of funds pursuant to subdivision (a), a court may award attorneys'
fees pursuant to Chapter 6 (commencing with Section 1021.5) of Title
14 of Part 2 of the Code of Civil Procedure.
   (e) The action authorized by this section shall be known as a
"School Bond Waste Prevention Action."
   15288.  It is the intent of the Legislature that upon receipt of
allegations of waste or misuse of bond funds authorized in this
chapter, appropriate law enforcement officials shall expeditiously
pursue the investigation and prosecution of any violation of law
associated with the expenditure of those funds.
  SEC. 4.  Section 35233 of the Education Code is amended to read:
   35233.  The prohibitions contained in Article 4 (commencing with
Section 1090) and Article 4.7 (commencing with Section 1125) of
Division 4 of Title 1 of the Government Code are applicable to
members of governing boards of school districts and to members of
citizens' oversight committees appointed by those governing boards
pursuant to Chapter 1.5 (commencing with Section 15264) of Part 10.

  SEC. 5.  Section 72533 of the Education Code is amended to read:
   72533.  The prohibitions contained in Article 4 (commencing with
Section 1090) and Article 4.7 (commencing with Section 1125) of
Division 4 of Title 1 of the Government Code are applicable to
members of governing boards of community college districts and to
members of citizens' oversight committees appointed by those
governing boards pursuant to Chapter 1.5 (commencing with Section
15264) of Part 10.
  SEC. 6.  This act shall only become operative upon the passage of
the "Smaller Classes, Safer Schools and Financial Accountability Act"
which is contained in a proposition at the November 7, 2000, general
election.
